As Ron pointed out, it’s hard to keep up with all of the distortions in the marketplace thanks to a decade of Federal Reserve easy money.
How do you cover all the bubbles? The nature of what the Fed does by manipulating interest rates to lower than the market rate, everything has to be affected to some degree by a bubble and a distortion and a malinvestment, and excessive debt.”
Last month, US Global Investors CEO Frank Holmes said he thinks gold may well hit $1,500 this year. He listed the specter of increasing inflation, a weakening dollar, and income growth in China and India as three reasons to be bullish on the yellow metal.
This week, Holmes appeared on CNBC’s Squawk Box and continued to make a case for buying gold.
We’ve been enjoying a big party and it’s about to come to an abrupt end.
Stock markets have settled down after an awful couple of weeks earlier this month. On Feb. 5, the Dow Jones suffered its largest-ever drop in terms of points. It was down 1,600 at one point and ultimately lost 1,175.21 points, a 4.6% drop that day. At one point during that week, the Dow was off 10% in correction territory. But everything is calm now and most of the mainstream is once again feeling bullish and optimistic.
Peter Schiff spoke at the Vancouver Resource Investment Conference 2018 last month before the market tanked. But his message remains relevant in the aftermath of the plunge and the subsequent recovery because the dynamics in the market remain pretty much the same. Conditions are still ripe for a 1987-style market crash.
Investors have not been this optimistic…since 1987. They are even more optimistic than they were at the height of the technology bubble, the dot-com bubble, the new era. Of course, 1987 didn’t end well, right? We had a stock market crash, and there’s a lot about what’s happening today that reminds me about what was happening in ’87.”
Investor Jim Rogers has seen a lot in 75 years. So when he starts talking about the worst bear market in our lifetime, we probably ought to sit up and take notice.
And that’s exactly what Rogers said in a recent phone interview with Bloomberg.
When we have a bear market again, and we are going to have a bear market again, it will be the worst in our lifetime.”
It was interesting watching people on the left side of the political spectrum become practically giddy as the stock market tanked on Monday. It seems they couldn’t wait to pin the collapse on Donald Trump.
Of course, the president has set himself up to take the fall by constantly taking credit for this bubble economy. But as Peter said during an interview with Stock Pulse during the Vancouver Resouce Investment Conference. the only thing you can blame Trump and the Republicans for is doing what everybody else did – pretend government can give Americans a free lunch.
The stock market has continued its upward trajectory through the first two weeks of the new year. In fact, the market has only seen one down day since Jan. 1. Peter Schiff appeared on The Street and opened things up with a bang, calling investors “Oblivious.”
Peter reiterated a message he’s been preaching on his own podcast for weeks – despite what you see in the markets, the US economy is heading for a major crash. We’re partying like it’s 2006 – oblivious to what’s lurking right around the corner.
Peter also talked about China’s decision to cut back or end the purchase of US Treasuries, the Federal Reserve, Trump’s economy and Bitcoin during the interview.
When the housing bubble popped in 2007, the Federal Reserve went to work to reinflate the bubble. It quickly pushed interest rates to zero, and in December 2008, the Fed launched the first of three rounds of quantitative easing. The virtual money printing lasted for five years.
So, what did we ultimately get for the billions of dollars created by these Federal Reserve programs? As Ron Paul explains in a special episode of the Liberty Report, more numerous and bigger bubbles, and another crisis waiting to happen.
Stock market mania continues unabated. But in the latest episode of the Schiff Report, Peter Schiff warns that twin deficits may soon doom the stock market boom.
If we have a return of the twin deficits as a problem in 2018 – I’m talking about the budget deficit and the trade deficit – twin deficits. You know the last time that was a big problem? It was in 1987. What happened in 1987? We got a stock market crash. I know that was just over 20 years ago, but what was happening then reminds me a lot of what’s happening now. We had the stock market roaring. Everybody was confident. But people were overlooking these gigantic problems until they couldn’t overlook them anymore and then it ended in a spectacular crash.”
Merry Christmas & Happy Holidays
It’s been another wonderful and eventful year for all of us here at SchiffGold. These are truly some of our favorite seasons with Thanksgiving, Hanukkah, Kwanzaa, Christmas, New Years and other’s that bring family together to find joy in the holiday season and hopes for the new year to come.
The SchiffGold family would like to wish you and yours many blessings, happiness, and may your heart and home be filled with all of the joys the festive season brings. Merry Christmas and a wonderful New Year!
-SchiffGold Staff 2017